Manila, Philippines

Business Idea To Explore: Taxi Cab Business in the Philippines

Business Idea To Explore: Taxi Cab Business in the Philippines
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Interested to be a taxi cab operator? I must admit I am eyeing that too. Some would say the taxi business is already saturated, but for a commuter like me who can’t easily find an available taxi during rush hour or Friday gimmick nights, then there’s still opportunity

Taxi by Ben Fredericson (xjrlokix), on Flickr

As follows are some building blocks as we try to build and understand the taxi business model. Gathered from reading forums on taxi operations, internet research and most especially, interviewing manong drivers.

Find A Franchise

To operate a taxi cab, or any public vehicle for that matter, one must have a franchise issued by LFTRB. In simple terms, this makes the vehicle public (yellow plate), for public and commercial use, and allows it to traverse a certain route, such as say Montalban to Cubao or Marikina to Ayala. If you don’t have a franchise but use it for public transport, then your vehicle is considered colorum. For taxi cabs, the franchise is more or less flexible, such as Within Metro Manila to Any point of Luzon. The franchise is good for a certain number of years, like 5 years, and according to drivers, costs around Php120k to Php150k. The bad news is, LTFRB is no longer releasing new franchises. Maybe it does not want to saturate the market.
So is this a barrier to entry? Slightly. The way to get a franchise then is to locate those who are willing to sell theirs, for various reasons. Like those migrating, no longer interested to operate a taxi cab or to renew, those suffering losses, etc. And there are franchise resellers to be found. Also, some drivers suggest inquiring in bigger taxi companies, those who have dozens and dozens of units because at times, these companies allow small players and star-ups to buy partial ownership of their taxi units and their franchises. Once you have a franchise, this will be transferred to your name. So what will you name your taxi cabs?

Find a Vehicle

Again there are many ways to do this, either brand new or second-hand. There are lots of taxi cabs for sale in the internet. Car companies also offer basic car models fit for use as taxi cab. Note though that not all car brands allow their models to be used as taxis. One quick example is Honda. Lots of banks offer taxi cab financing or auto loans, but usually for a minimum number of units and for a partial down payment. Similarly, car companies offer financing and leasing services. Your major considerations should include how old the vehicle is, how it looks like and how’s the performance. Older models (no offense meant) may tend to be less fuel efficient, more prone to breakdowns and accidents (hence repair costs) and attracts less passengers as it may come across as unsafe, unreliable, uncomfortable and mahina ang aircon. Watch out too for regulatory policies, I think there is an upcoming rule wherein public vehicles will have a mandatory maximum age, after which it has to be replaced already. In choosing a vehicle, you might want to bring an automotive technician with you for expert assessment.

Find A Driver

A good, reliable, trustworthy driver that is. Or drivers. This can be the make or break of a taxi cab business, according to cab drivers themselves. If you have good working relationship with your driver, then you can expect him/her to be honest and transparent with you. Likewise, this should translate to good customer service which is crucial. Remember, customers would tend to remember the taxi name and plate number in case of bad experience (more than the driver), which affects your reputation as the registered taxi operator.
Usual daily boundary (or quota) ranges from Php1,000 to Php1,500 net per day, for drivers who use the taxi for 24 hours. If you have a second driver, then they can alternate. The second driver can use the taxi the next day while the first one takes a rest day. Or they can do 12-hour shifts per day. At Php1,500 quota, that’s roughly 15 trips at average of Php100 per trip (some smaller, some bigger especially given the traffic). The rest is his/her take home pay. For those who only have one driver, make sure s/he gets enough rest and does not drive the whole 24 hours. This is risky not just for the driver, but for the business.
The driver shoulders the fuel costs, violation penalties, and what is left is his take home pay. Of the many drivers we have interviewed, they all said that they can easily reach the Php1,500 boundary. Some can even park on the roadside and get some sleep (i.e. 1am to 5am) if they are on graveyard shift and still have enough take home pay before returning the unit by 6am. The operator meanwhile usually shoulders car amortization payments, repair, tune-up and check-up costs, payments in case of accidents (that’s why you need a good driver), regulatory and registration costs.
Operators also have reward systems to encourage good performance from drivers. Some offer a sack of rice or groceries for example when quota was hit daily for the whole month. Or allow lower quota during weekends. In case of deficits, some operators allow make-ups, as long as the deficit gets compensated and paid say within the week. Otherwise, driver cannot use the taxi as long as deficit is unsettled. The trick is to make your drivers, your employees, happy, so they deliver good customer service. Everybody happy.

Rough Profit Analysis

Assuming you got a second hand taxi unit worth Php400k, on bank auto loan for 3 years at 8%. 

Down payment is say 30% or Php120k. Amortization on the loaned amount (Php280k) is Php8.8k. 

Cost of new franchise, regulatory tests and registration requirements, paperwork, say Php180k. Provisions for repairs, insurance, driver rewards, say Php5k a month. 

Total initial investment is Php580k (Php120k cash out, Php280k auto loan and Php180k franchise costs etc). Quite big initial investment especially if you compare to food carts franchise.

While monthly expense is approximately Php13.8k (Php8.8k amortization and Php5k provisions).

At Php1.4k boundary, 22 workdays = Php30.8k
At Php1k boundary during 4 Saturdays (Sunday as rest day) = Php4k

Total revenue = Php34.8k

Adjusted Revenue = Php31.3k (assuming boundary is only reached 90% of the time, and you’re kind)

Total expense = Php13.8k
Total Net Income = PHP17.5k
ROI in ~33 months

In 33 good months, you have recovered your Php580k investment. Assuming good months.

More inputs? Let us know through the comments box below.

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Photo: Taxi” by Ben Fredericson (xjrlokix)
This work is licensed under a Creative Commons Attribution 3.0 Unported License.
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192 Responses

  1. Jojo says:

    i own a taxi and your caculations are wrong…since you cant get a new franchise, a franchise from resellers would easily cost over a million pesos. Taxes, sss, registrations and other regulatory costs as well as maintenance should be considered as well.

  2. Geri says:

    Best to check this when you have the franchise registered under your name. Why not buy from Baguio po, closed na rin ba? As far as we know closed na sa Manila eh.

  3. Anonymous says:

    Hi im planning to buy a taxi franchise from Manila. I am from baguio. Ok lang ba gamitin yung franchise registered to any point of luzon pero dto ko papasada sa baguio?

  4. Geri says:

    Irerenew nyo po sa LTFRB.

  5. Anonymous says:

    question po,pano if kung bbili ako ng taxi franchise s olx tpos nagexpire n ung franchise? pano po ako mkakapag renew? TIA 🙂

  6. Anonymous says:

    Maraming salamat po sirs Geri and Romeo Ybanez. Highly appreciated po.

  7. Geri says:

    Just to clarify, the window hours sa coding applies to private vehicles, and in a sense to Uber and Grab. Taxi cabs na yellow plate don't have window hours, hence coding from 7am to 7pm.

  8. Geri says:

    With Uber and Grab Car coming into the scene, definitely there's an impact sa taxi business especially if nasa CBD na maraming kalaban na Uber / Grab. In fact, many taxi operators surely have Uber units na rin since cost for entry is lower since no need to pay for a hefty price just to get franchise. Though as of the moment naka-hold pa rin ata new accounts ng Uber and Grab.

    The boundary we quoted was years ago. Please note that we did not push through with the taxi given a better alternative na Uber and Grab. Dun po kami nakafocus ngayon. Coding has an impact also as you correctly pointed out. That's why some units make the most of window hours and sa gabi. As Romeo pointed out, LTFRB is no longer issuing new franchises to best to look for one sa secondary market.

  9. Geri says:

    Thanks for the update Romeo!

  10. Romeo Ybanez says:

    Hindi na po nagbibigay ng bagong franchise ang LTFRB. Pero sa mga ads sa OLX 6-10 months daw. Masyadong matagal din.

  11. Anonymous says:

    Hello Geri

    Maraming salamat po sa knowledge that you shared. Very useful po and highly appreciated.
    Just to ask po a few questions as I'm thinking of going to run my own business as a taxi operator in Manila.

    With Uber coming into the scene, has there been a big change in the taxi business in metro Manila? Or what has been the major effect?

    Ang boundary po na you quoted for 12 hours at 500-700 Php seems a bit low or did I misunderstood the info??

    Also po the coding in Metro Manila, na apektuhan po ba ang mga taxi? mean po na isA o dalawang araw every week na hindi po ako makakabiahe Dahil sa coding??

    Lastly if I buy a new unit, from beginning to end how long roughly will the application (LTFRB) and making it legal take to start my unit earning money. Just want to know the length of time I need to cover i.e.various cost / living cost if I choose to apply for a bank loan.

    That's it. Salamat po and hope to hear from you soon and to all the kind people here giving out their valuable knowledge.


  12. Noel dela Pena says:

    Hi good day Geri,
    I just would like to ask, how much is the boundary now for 24hrs or daily trip?


  13. Hyundai accent 2011 says:

    Sa mga operator po ng hyundai diesel na taxi, magkano po ang boundery nyo sa weekdays and sundays at kung papalabas ng coding, 2011 na crdi accent ang unit ko, presently 1700 daily boundery ko for 24 hours and 1500 ng sunday pero sagot ko SSS ng driver

  14. Hyundai accent 2011 says:

    Dipende sa diskarte ng driver, pero sakin duesel, 24 hours 1700 baundary, kaya ng driver 900 above. Pag magulang driver sabihin mahina kita kahit naka log sa metro total trip na kinita

  15. Hyundai accent 2011 says:

    Sa mga operator po ng hyundai diesel na taxi, magkano po ang boundery nyo sa weekdays and sundays at kung papalabas ng coding, 2011 na crdi accent ang unit ko, presently 1700 daily boundery ko for 24 hours and 1500 ng sunday pero sagot ko SSS ng driver

  16. Mingken says:

    Hi tarakiboyz.xonsidering the too expensive franchise here in Baguio, is there still a good income?I'm planning to get a brand new unit then after 2 years be getting franchise.or would it be better to get a secondhand unit with franchise?thank you

  17. Mingken says:

    Hi..I'm planning to get a taxi unit. I'm choosing between inova avanza and vios. Can anyone give me an idea? Having second though into this business though..ive heard franchise here in Baguio is already 900k..

  18. Anonymous says:

    Hi good day. Do you have an idea how to change the line of a taxi. From Metro Manila to Caloocan only change it to Metro Manila to any point in Luzon? Thanks.

  19. Reynaldo Valdez says:

    What is the take home pay of taxi drivers (less boundary & gas), for a 12 or 24 hr. shift?

  20. Reynaldo Valdez says:

    What is the usual take home pay of taxi drivers (less boundary & gasoline) for a 12 or 24 hour shift?

  21. Anonymous says:

    Sir good day ulit…senxa na po sa ka kulitan Huh.

    I am an OF from KSA.

    I have one brand new van and is now working as PUV s cagayan Valley with licensed franchise …
    Now since it's working good naman at may puma pasok na konting income, I am.planning to add another unit . I just want to ask if I can use that franchise for another unit also?one franchise for multiple units. Pwede.po ba yung ganon?

  22. Unknown says:

    Mayroon po akong lumang franchise sa 2nd hand na taxi. Sa ngayon nahi2rapan ipalakad at ilipat sa bago. Anonpo bang dapat gwin? Pera pera daw ang kalakaran ngayon. Samantalang bu2hayin ko lang nman ang franchise papers dhil sira na yung taxi pero meron na akong bago. Pls advice bk may kakilala kayong mabilis maglakad.

  23. Anonymous says:

    Hi. Attention to all UBER/GRABCAR Operators! We are offering reliable services to increase your income and protect your vehicles by using GPS Trackers:

    Our company will give the following benefits:

    BIGGER INCOME-Know if a driver cancelled a booking and personally transacted with a passenger as reported by our passenger-detecting technology
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    VEHICLE MONITORING-Locate your vehicles using your cellphones or computer, anytime, anywhere

    Hurry! Enjoy the benefits! For questions and further information, call us today.

    iSolve Business Technologies Inc. Customer Service :
    Cellphone : +63-917-819-9344

  24. Geri says:

    Also the objective is to see whether the taxi business can be self-liquidating, if income from it can more than cover for the monthly expenses, including monthly amortization.

  25. Geri says:

    The assumption is I availed of a car loan to get the vehicle, so my monthly payments on the car loan is actually part of my costs.

  26. Hannah Dixson says:

    Hi! Why Did you include amortization in initial investment cost? Shouldn't we only include dowpayment of P120,000 and franchise fee of P180,000 making initial investment only P300,000

  27. MAHA GB says:

    Thanks for your great explanation regarding Taxi franchise. But its still complicated to me. Well i will keep reading your blogs. Thats the only way.

  28. MAHA GB says:

    Thanks Mr Geri, Your explanations are very genuine & clear. Thanks.

  29. Concern Filipino says:

    Hi Mr. Juan! Thank you much for sharing these info to us. It give us an idea what to do and if our vehicle is worth enough to go for public license plate though. Please keep posting information that could help people like us to be smart towards on making decisions.

  30. Geri says:

    Please see below response.

  31. Geri says:

    Sorry sir but we're not sure. Best to inquire with LTFRB. Based based on what we see on streets, there are non-white taxis. There are even blue taxis. So with that, it might be possible to have a non-white taxi as long as the required markings on the side and the light on top are there. Though as the operator, you want your taxi to be easily distinguishable even from afar so that is something you want to consider as well.

  32. Anonymous says:

    Gud day,may toyota avanza po ako kulay blue balak ko po gawin taxi,pwede po ba kulay blue sa taxi sa metro manila..ano po ba mga kulay na pwede gawing taxi po..tnx and god bless

  33. Nayr says:

    Gud day,anong kuLay po ba ng kotse pwede sa taxi,balak ko po kasi kumuha ng avanza kulay blue.pwede po bang maging taxi po yun..thanks and god bless

  34. JF JF says:

    Plate Number Ending 1 and 2 Monday, 3 and 4 Tuesday and so on, till friday 9 and 0 ending plate, Ano pong unit ang nabili mong taxi? anong year model? magkano po pa boundary mo?

  35. Unknown says:

    ending plate number 1 and 2 is monday, 3 and 4 is tuesday, 5 and 6 wed., 7 and 8 thurs., 9 ,0 Fri.
    magkano po ang pa boundery mo? anong unit at year model ng taxi nabili mo?

  36. Geri says:

    Congrats on your new taxi franchise! Suggest you ask around other taxi drivers too para competitive incentive scheme nyo. Aside from boundaries I heard some who given sacks of rice and groceries pag Christmas, then if no absences or accidents for a period of time may incentive din. Those are just some.

  37. Geri says:

    Wow that's kinda pricey. Baka heavily regulated na ang taxi sa Baguio kaya they discourage new ones, hence limited supply, more demand, high price?

  38. Crissy Kim says:

    Hello!im a new taxi operator plase if anyone advice me about coding guideline incentives for keeping the driver .

  39. Unknown says:

    Hello!im a new taxi operator please recommend me an accountant i want to organize my tax .

  40. Tarakiboyz says:

    Taxi franchise in Baguio City is about P800,000.00!!! And it depends on the price made by seller.

  41. Anonymous says:

    what if you want a taxi cab business in the Philippines while you work in abroad. then you assigned some one to operate your taxi, how much or percent that can get the operator for the boundary if like 1500 a day the boundary.

  42. Anonymous says:

    if u buy 2nd hand franchise and ul change the name, of cors it means new business name and DTI is a pre requisite for acquiring or renewing franchise. its a requirement

  43. Anonymous says:

    using ordinary oil, u need to change it every 8.5k km and it depends what type of unit ur going to use., more volume of oil for bigger units of course.. systetic oil cost around 700/liter. while syntetic oil goes up to 17k km. tires normally last 3 – 6 months. tire cost 3k-5k, depending on brand

  44. Anonymous says:

    yes you can.. but each franchise will undergo hearing. but i suggest you better wait each franchise to expire before you change name so ul process it all in one go.

  45. Anonymous says:


    While I do not have any doubts about your computation and projected income, I think you should also consider unexpected events like when the driver is absent, or when the taxi cannot be taken out when the Metro is flooded, or when the taxi meets an accident, etc.

  46. Emil Casabar says:

    Hi! What are the tests we need to do in spotting a real or fake franchise? Thanks

  47. Emil Casabar says:

    Hi! What are the basic screening we need to take when spotting a real or fake franchise? Thanks

  48. Anonymous says:

    Sir Geri,

    Please elaborate the cost of franchise for OFW.

    thank you…

  49. Geri says:

    Thanks for sharing Jojo.

    I'm wondering why the franchise cost in Baguio is so expensive? I'm not sure what the current rates are here in Manila but I was thinking rates in Baguio would be cheaper. Unless they are limiting the franchises to avoid congestion there in Baguio.

    If start up costs are that big and payoff period is that long, I myself would think twice or thrice before venturing into taxi business.

  50. Geri says:

    Thanks for sharing Jojo.

    I'm wondering why the franchise cost in Baguio is so expensive? I'm not sure what the current rates are here in Manila but I was thinking rates in Baguio would be cheaper. Unless they are limiting the franchises to avoid congestion there in Baguio.

    If start up costs are that big and payoff period is that long, I myself would think twice or thrice before venturing into taxi business.

  51. Jojo says:

    Hi thanks for the information!

    I have a Taxi for almost a year now here in Baguio (Boundary is usually P700-800 for 12 hours)

    My Experience is this.. Taxi cost New (800k) + Franchise (600k – 2nd Hand)

    700 Per day x 26 Days = Around 18k
    1 Month = 18k
    1 Year = 216k
    Real Income = I have around 180k left a year (change Tire, Monthly Tax, change parts, monthly emission testing etc etc., Maintenance.)

    So 180k /year. So it takes around 8 Years to get my investment back..
    That is why I am thinking twice if it is a good business!

    But after 8 years.. I start to earn.. lets add 7 years until the Unit Phases out!
    After 15 years I earned minus investment of 1.4m is 1.26 million.
    I then need to buy a new unit.. Until then I assume the cost would be 1 million!
    So I earned after 15 years only 260k

    Please correct me if I am wrong

  52. Anonymous says:

    Sir Geri, follow-up lang po. Correct me if im wrong. Ang ibig po ba nyang sabihin 2 TAXI with 1 franchise?

    2 Avanza po kasi gusto ko para mag-umpisa para iwas baha. sana po ay matulungan nyo ako. OFW din po ako.

    salamat sa Article nyo, almost 2 months na ako ng rereseach haggang sa nakita ko eto. laking tulong para magka-idea.

  53. Anonymous says:

    ilan buwan po ba tumatagal pag transfer ng 2nd hand na franchise na nabili from owner to buyer

  54. Geri says:

    Depends. This rate is actually market driven. Best to do surveys sa mga taxi drivers na masasakyan mo.

  55. Geri says:

    Pwede naman isang unit lang na taxi basta may franchise. The trick is to find that franchise for one unit. I see a lot of franchises for sale sa OLX. Just be careful though when you buy and negotiate.

  56. Geri says:

    280K loan amount for 3 years at 8% interest rate. Assumed car value is 400K, then 30% DP of 120K. Balance of 280K shall be loaned.

  57. Geri says:

    This comment has been removed by the author.

  58. mark joshua Perez says:

    hello po. im joshua 21yrs old realstate agent po. nagbabalak po ako mag negosyo ng taxi. and ask ko lang po if pwede po ba ko mag start as 1unit lang? makakapag franchise po ba ko nun? if 600k kaya lahat lahat makakapag avail ako? gusto ko pa po kasi mag aral at ito lang nakikita ko na negosyong moneyworks for you. at pwede isabay sa pagaaral. madaming salamat po Godbless

  59. mark joshua Perez says:


  60. mark joshua Perez says:

    hello po ask ko po. pwede po ba mag start ng ganito ng 1unit lang? ang 600k po ba is kasya na? all in? isa po kasi akong real state agent 21yrs old iniipon ko po lahat ng com ko para makapag negosyo ng taxi kasi isto po yung nakikita ko na money works for you na bussiness. gusto ko po kasi makapag college at ito yung naisip ko na if may taxi ako kaya ko pag aralin sarili ko. magkano po kaya ang kelangan na pera all in of pwede mag start as 1unit then dadagdag na lang kung palarin. salamat po

  61. Anonymous says:

    Hi. I would like to know how did you come up with the 8.8K monthly amortization? I am confused..

  62. Anonymous says:

    please tell me more abut this uber. if i will ask someone else to drive the taxi for me, how much is the boundary?

  63. Anonymous says:

    Sign-up with uber, no franchise needed. Use my invite code: j5d3v
    You and I will receive P2000 incentive each.

    This is a very informative article though.

  64. Anonymous says:

    Hi, once you get a car it means it will be under your name and the bank don't care if you're going to use it for business, personal, company use or whatsoever but since the car that you're going to get is private you have to shoulder the encumbrance to change your private vehicle to public.
    For those who's texting me, I'm asking if they are employed or self-employed and their monthly gross income because in our bank the minimum monthly g.i required is 40k and if you did not passed the required income then you can look for your co-borrower.
    We have a second option if ever the bank can't grant your application I can still help you regarding this because I know someone but it is from in-house financing which is direct from the dealer. This is what I'm doing to some of our client who can't afford to give 20%DP that based on SRP.
    I hope it will help.


  65. Anonymous says:

    To this date, how much should be the boundary for brandnew taxi for 12 hours shift only NOT 24hrs ?

  66. Anonymous says:

    Hi. Ms Anna, if I get a new car for monthly installment basis,it can be work as taxi?i Mean if i have already franchise then you will allowed me to use this car as taxi?i heard most bank doesn't like to work there unit as business use.Please explain me.

  67. Anonymous says:

    planning to setup this business.. i just dont know where to start until i found this blog very informative … please keep posting in order to update us 🙂

  68. adonis gayeta says:

    This comment has been removed by the author.

  69. Anonymous says:

    Hi Anonymous, I'm Anna working in a bank. I suggest if you're going to acquire a car in a bank much better if you'll get a brand new car.
    Let me tell you the difference,
    For brand new:
    *80% of the SRP will be finance by the bank and 20% will be coming from you
    *we can also ask for a discount to the car dealer
    *up to 5yrs to pay
    For 2nd hand:
    *the bank need to appraised the car and only 70% will be finance by the bank
    *interest rate is higher than a brand new
    *up to 4yrs

    If you want maybe I can help you to process your application, you may contact me to 09354398878 and if you have questions feel free to contact me.

    Thank you.

  70. Anonymous says:

    What is the probability that your driver will steal your taxi and never come back? Are there safeguards against this? What if your taxi smashes into a brand new mercedes/bmw car? Does anyone know how much they paid for an accident? I know that a comprehensive insurance will take care of this but how much would that cost?

  71. Anonymous says:

    Hi, if i have already a taxi franchise, I can transfer to a car with installment basis?the bank will allowed to use there unit for business? I need your advise.Thank you.

  72. Anonymous says:

    Sir, i have already taxi franchise. its possible to transfer to install basis car?Car company or Bank will agree for this?Please need your advise.Thank you.

  73. Anonymous says:

    If we are going to buy a second hand taxi with existing franchise, what can you suggest with the safest mode of payment? Cash or check? Thank you.

  74. Geri says:

    Good point. As far as I know public vehicles need to be insured for the owner and the passengers' benefit. It seems though that this is not strictly enforced. Nonetheless it will be prudent to have the vehicle insured.

  75. Geri says:

    Good point. As far as I know public vehicles need to be insured for the owner and the passengers' benefit. It seems though that this is not strictly enforced. Nonetheless it will be prudent to have the vehicle insured.

  76. Geri says:

    This is really up to you since I don't recall being required of clearances when I got my license (though mine is a non-professional license). Might be required for professional license holders. Kindly check with LTO.

  77. Anonymous says:

    How about the insurance in taxi cab, is it really require, I never read any comments here regarding comprehensive insurance, this could add to the expenses.

  78. Anonymous says:

    Before hiring drivers, are they required to submit NBI clearance, police clearance and etc…

  79. Anonymous says:

    Hello Sir,Do i need to register in DTI for start a taxi business?Thanks.

  80. Geri says:

    This will depend on your agreement with your driver but usual boundary nowadays is in the PHP1500 range.

  81. Geri says:

    Apologies I don't have concrete answers to your queries. For #2, the income tax will depend on how much revenues you will declare. For #3, my opinion is yes you can do this. Best to consult with LTFRB though to avoid violations.

  82. Geri says:

    This is the right legal thing to do, become a sole proprietor since you're engaged in a taxi business as an operator. I'm sure a lot though are not even registered in DTI.

  83. Anonymous says:

    We are planning to venture on this taxi business and we are hoping that you can help us with our queries.

    1. How much will the renewal of the franchise be if it has expired?
    2. How much is the government tax that we have to consider every year?
    3. Can we operate the taxi while the “Sale/Transfer of Franchise” is on process?

    Thanks for your help!

  84. Anonymous says:

    Hi,if brand new car can get daily boundary P.1500, if 12 hours working?Thanks.

  85. Geri says:

    If it's confirmed that LTFRB is no longer issuing new taxi franchises (assuming you checked because I haven't) then market supply and demand will determine the price. Check in OLX the usual franchises for sale.

  86. Geri says:

    The accredited provider should be the one to install it since it also has to be tested / sealed as tamper proof.

  87. Anonymous says:

    Hi,do you have any idea about how much current price selling taxi franchise?because LTFRB is no longer issuing new franchise.Thank you.

  88. Anonymous says:

    There is any procedure for taxi meter or I just buy and install it?Thanks,

  89. Anonymous says:

    Hi.If I buy a taxi franchise,its include the taxi meter?or I have to buy separate?Thanks.

  90. Geri says:

    It's separate. It usually comes with the taxi unit not the franchise unless you're buying a taxi unit with an existing franchise chances are there's already a meter. There are accredited meter providers.

  91. Geri says:

    Depends on the franchise seller and what franchise you'll buy. Some sellers have franchises for more than one unit and they might bundle it to sell at lower price than if you buy just one. Depends also if the franchise will soon be up for renewal. You might want to consider UBER too.

  92. Geri says:

    Depends on the franchise seller and what franchise you'll buy. Some sellers have franchises for more than one unit and they might bundle it to sell at lower price than if you buy just one. Depends also if the franchise will soon be up for renewal. You might want to consider UBER too.

  93. Geri says:

    Best to check the steps with LTFRB.

  94. Geri says:

    Heard this too from taxi drivers we interviewed but that was way back years ago. Best to check with LTFRB. Or you might want to try UBER.

  95. Anonymous says:

    Hi im planning to buy a 2nd hand taxi is there any one who can help me, what are the step to step process to transfer of ownership to my name thanks

  96. Anonymous says:

    Hi.geri im planning for a taxi business,if I'll buy a franchise,let say 180k is it good for 1 unit only?f I'll started for 3 units how much my franchise cost?

  97. Anonymous says:

    hi,It is true that LTRFB is no longer issuing new taxi franchise?Thanks.

  98. Geri says:

    Renewable po pero wala namang limit kung ilang ulit irenew sa pagkaalam ko basta pasado sa requirements.

  99. Geri says:

    Not sure about current franchise rates pero worth it po ba ang 740k sa isang 2010 na Urvan?

    I suggest you do cash flow analysis kung gano katagal mababawi ang puhunan sa normal operating conditions and maintenance expense. Ask as well why the owner is selling the unit in the first place.

  100. Geri says:

    Renewable po pero wala namang limit kung ilang ulit irenew sa pagkaalam ko basta pasado sa requirements.

  101. Anonymous says:

    Ang prangkisa po ba ng taxi or UV exp eh lifetime? Pero renewable sya every 5 yrs? Salamat po.

  102. Anonymous says:

    May nagbebenta sa akin ng nissan urvan escapade 2010 model, 16 seaters, may linyang pasig-ayala..1M cash, is it worth? 260k nga daw ba ang prangkisa ngayon? Appreciate any comments. Ty

  103. Anonymous says:

    Nice blog geri

  104. Ritchie Manaol says:

    Nice blog geri, may offer sa akin ng nissan urvan escapade, 2010 model, 16 seater, with pasig-ayala franchise, 1M cash…is it worth? Meron naman prangkisa lang pasig-megamall 260k naman, ganun ba talaga ang presyuhan ngayon? Appreciate ur comments. Tks

  105. Anonymous says:

    Hi, I was offered to be the bookkeeper of transport business having 10 taxi cab. But this is my first time to handle this line of business. I have few questions:
    1. what are those BIR compliance applicable in taxi operators (aside from monthly VAT and quarterly ITR -what are the tips, if any )
    2. Are they require to apply in SSS, Philhealth and PAGIBIG also?
    3. do you have tax calendar / business compliance calendar for taxi operators.

    Thank you. Appreciate feedback

  106. Geri says:

    Hi. Usually car dealers such as Toyota and Nissan offer car financing whether for private use or for taxi use. Banks also accommodate auto loans for commercial / taxi use. Just be sure to get the one with lowest rates and of course ensure you can repay the loan. Goodluck!

  107. Anonymous says:

    hi gusto ko sana mag start ng taxi business.. 1 unit muna.. may alam ba kayo nag offer ng taxi financing..? tnx sa help nyo

  108. Geri says:

    Hi. It seems that the file you're referring to was published way back in 2010 so for best results suggest you inquire directly with them.

    Nothing wrong with an OFW getting a franchise or two (assuming they still issue franhises). If you're worried about the paper work and currently outside the country, consider executing a Special Power of Attorney to represent you and sign documents on your behalf.

  109. Anonymous says:

    Hello, totoo ba na ang isang OFW ay pwedeng kumuha ng franchise sa LTFRB para sa dalawang taxi? Kahit hindi na nag-i-issue ng bagong franchise ang LTFRB?

    Valid pa ba ito?

  110. Geri says:

    Ok. So the franchise cost is still kn the range of PhP150K. Will wait for your updates.

  111. Anonymous says:

    I was offered P150000 for the franchise from an agent of Nissan…Jonathan

  112. Anonymous says:

    I haven't bought the franchise yet but i was offered P150000… the info was given to us by an agent of Nissan. Planning to buy first a franchise (of course) then get an Urvan … thanks for the info Geri.. will keep in touch whatever happens next…

  113. Anonymous says:

    Hi there nice blog! I have plans of buying a UV Franchise.. here's the scenarion. I want to take the route of Baclaran-Paliparan…but the available franchise is Lawton-Paliparan? Is it ok if i take only the 1st route while my franchise is the 2nd one? Thanks in advance and Godspeed !!!!

  114. Anonymous says:

    I think it's not legal…one franchise for two vehicles and both of them have two different names written on the Certificate of Reg. of the vehicle…

  115. Geri says:

    I don't think so. You might be apprehended when passing by Baclaran area when you're supposed to be plying Lawton. Franchises are meant to regulate the volume of public vehicles servicing a particular route in relation to the demand as well. Though many UV Express get away with this.

  116. Geri says:

    On a related note, how much did you pay for the franchise if I may ask?

    Glad you appreciate the blog. Keep on reading and commenting.

  117. Geri says:

    A1. Depends on your budget. A sedan type may be more fuel efficient but an avanza type may carry more people and be perceived as more spacious.

    A2. You can find lots of taxi and franchise sellers in sulit /olx.

    A3. Most likely he bought a brand new one unless he's referring to transfer of franchise to his name which may have been delayed as well.

  118. Geri says:

    In the rough analysis above, a PHP5k provision was used as monthly overhead expense. I'm afraid taxes was not included though. Thanks for pointing this out.

  119. Geri says:

    This should be possible but best to inquire with LTFRB.

  120. Geri says:

    I don't think it's legal especially if the franchise is for just one vehicle. Maybe it's an under the table or internal arrangement only.

  121. Anonymous says:

    Hi to the owner of the blog. Thanks for this article. It really enlightened me a lot. I also plan to buy a taxi franchise for baguio. I work in makati but my family is staying in baguio (parents brother).

    Q1. What is the best unit to buy to use as a taxi?

    Q2. Where can I check for a taxi franchise?

    Q3. According to one of the commenters, he said he still wasnt able to get his franchise / PUV plate for his taxi? Does this mean his taxi is a new franchised vehicle or he bought a 2nd hand franchise?

  122. Anonymous says:

    What about maintenance (change oil, tires, taxes, etc.)? are all this included in your computation?

  123. Anonymous says:

    Hello. If i may ask, can you rename the franchise if you bought a second hand unit? What if i bought 5 different franchises? Can i put them in one name?

  124. Anonymous says:

    Hi. Do any of u have an idea if sharing a UV express franchise is legal? I assume not, but not so sure abt this. A friend said he knows.someone who just got a UV Express franchise (for one van only) and can share franchise with us in case we push thru with buying a van.

  125. Anonymous says:

    I found a number of people selling their taxi franchise, some of them includes their taxis as a package.

    Since LTFRB does not provide new taxi franchises anymore, only choice we have is to buy from other existing operators.

    Indeed there is a risk in this kind of setup. But business is business. There is always a risk. The higher the risk, the higher the returns.

  126. Anonymous says:

    Is there a forum where people buy and sell Taxis and franchises?

  127. Anonymous says:

    Hi! thanks for your article, it's very informative. But we have to add more information about the problems to be faced by would be taxi cab operators or would be investors like dealing with red tapes in LTFRB. In operating taxi, time is an essence and every delay in LTFRB approval of the required documentation means time… and time means money.

  128. Geri says:

    Thank you for the reality check. This is indeed ever present and Juan is almost always used to it. Sad but true. There's hope though. 🙂

  129. clyne perez says:

    sir geri ask ko lng po plan ko kc buy ng taxi 2010 up or avanza taxi anu po documents need may bbayaran b sa bir ?

  130. Geri says:

    Hi Cline, sorry not really sure. Best to inquire with LTO/ LTFRB since either office with handle the transfer of ownership to you. Normally BIR has a sales tax like for buying houses. Chances are it might apply the same to cars. When buying a new car there is actually a sales tax, we just don't feel it since it is imputed in the car's selling price. Again this might be the same for 2nd hand cars.

  131. Geri says:

    Anonymous, amd, it will be cool of you can update us once you've purchased your taxi units, franchise and all. Share with us your experiences and insights.

  132. Geri says:

    Hi Ibrahim,

    A1. The franchise in itself acts as the permit to operate a public transport such as taxi cab. Before you get the actual franchise though, I'm sure there are other licenses and documents to submit.

    A2. I'm not sure if there are strict rules with regards to parking because I see lots of taxi cabs parked along public roads. But I think there is a growing clamor to require parking spaces before private and public cars can be purchased. Of course a place to park is ideal since it's not everyday that the cab is out, even if there are alternating drivers. There will always be down times and rest days for the drivers and the cars.

  133. Geri says:

    I don't have an actual franchise yet but from the ads I see it seems like 3 to 5 years is the usual franchise validity. Best to check woth LTFRB though. Of course if you buy a second hand franchise then validity might even be less.

    Like all franchises and licenses, once it expires, it has to be renewed, otherwise you're vehicle might be considered colorum which is technically illegal.

  134. Anonymous says:

    ilang years po yung validity ng franchise? do we have to renew it once expired?

  135. Anonymous says:

    Hi Geri et all,
    how many years yung validity ng franchise?

  136. amd says:

    I need 20 taxi with licesense

  137. Anonymous says:

    I am trying to look for old taxi unit with existing & renewable franchise

  138. Makatash Makatash says:

    hello Geri,
    This is a very interesting & thorough topic. Thanks to you and everyone who participated here.

    Q1: will one require a special government permit to operate a cab business or the franchise should be sufficient?

    Q2: will one need to rent a garage to park / secure the cars at end of the driver's shift or just hand over the car to the next driver next day assuming having alternating drivers?


  139. jules yan says:

    lower po..

  140. ace clark del pilar says:

    Selling Hyundai Accent diesel 2010 TAXI. Gagamitin nalang po. 500,000. 09285523284

  141. mary jane diwa says:

    hi..just wanna ask what are the needed requirements of getting franchise of LTFRB?thank u

  142. mary jane diwa says:

    hi..i just want to know the requirements of getting franchise?

  143. Anonymous says:

    Guys,thank you so much sa lahat ng info.

  144. Anonymous says:

    hi, i have 2012 2nd hand unit, i want it to convert to Taxi, for now unit was with other name and color black, any suggenstion weather to change name together with change color & classification or buy a franchise first.

  145. Geri says:

    It was just based on interview with 3 cab drivers. Best to check directly with LTFRB though.

    Recently, in TV Patrol's Tapat na Po segment though, it took years and media intervention for an applicant to get her franchise.

    If you can confirm with LTFRB, grateful if you can update us. Thanks!

  146. Anonymous says:

    hi, you said that the LTFRB no longer issues new franchises. what is your source? is it just something they informed you upon inquiring? i've been looking at their website and i can't find an announcement/resolution to that effect. thanks!

  147. Anonymous says:

    Gents, I am looking for taxi or FX to purchase, id like to pay downpayment depending on the agreement, and rest as boundary. I will drive it myself so i dont have to look for driver at all. I am on OFW and likely to settle and try taxi service by early next year.

    Any advice please, Thank you.


  148. Geri says:

    Hi Bryan, depends on your cash flow estimates but based on the limited info #2 looks better. Longer franchise validity and you did not describe the unit as very old. 2 also looks more expensive though. At least if the venture doesn't work for you, you still have a buffer to resell it.

  149. Geri says:

    Right now I don't think there is a specific law specifying the age of the car that may be used as long as it passes the test criteria during regular registration and of course as long as franchise is renewed. Nonetheless I think there is a proposed legislation to limit the age of vehicles for use, 10 to 15 years if I recall correctly.

  150. Geri says:

    Should be ok. Franchise limits the route where you can pass by and get/drop passengers but not where your garage is. For taxi for example I think it's very open (e.g. Metro Manila to any point of Luzon). For UV Express franchise it is more limited (SM Fairview to Buendia). For the latter, you can still have a garage in Bulacan but legally you can't get passengers and ply within Bulacan area. You can only get/drop passengers along your franchised route.

  151. Bryan says:

    Which one of the existing Taxis is better to buy?

    1. a very old unit with an franchise valid for 1 – 2 years
    2. a unit that is 2 to 4 years old with franchise valid for 4 – 5 years.

  152. Anonymous says:

    How many years does a car , can be used as taxi?

  153. Anonymous says:

    I have a ncr franchise, is it ok if my garage is located in bilacan?

  154. Amanda Joson says:

    Venturing into any transport business is definitely a lucrative trade, but it has its risk. Taxis are prone to accidents and repairs so it is a must that you get a
    comprehensive car insurance to guarantee that your fleet has protection from repairs and accidents.

  155. Anonymous says:

    i have an new unit2014 model which i loaned from Toyota and bought franchise last Jan 2014. Sadly, until now I have not yet received my yellow plate as LTO/LTFRB has no available yellow plate daw. Is this true?

    Anyone out there knows the real reason?

  156. Geri says:

    Thanks for the kind words. Advice? Hmmm. I'd say just write what interests you. Write not to be read or to worry about readership. Just write quality articles, do some SEO and your readers will surely find you.

  157. Geri says:

    It's because there is a backlog in releasing the new plates with new format: AAA NNNN. That's why there are lots of recently bought vehicles with no licensed plates yet. Would you mind sharing how much it cost you to buy the taxi franshise?

  158. Anonymous says:

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    enjoying your blog. I too am an aspiring blog
    blogger but I'm still new to the whole thing. Do you have any points for inexperienced blog
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  159. Geri says:

    Nice dream and I hope you pursue it. Yes in theory it may look easy but definitely much more complicated in practice. But it shouldn't stop us from pursuing passive income. Goodluck!

  160. Anonymous says:

    i thought owning a taxi business is simple, as long as you have a vehicle then register it to LTFRB for business purposes, then you'll get 1k to 1,500 boundary per unit daily. haha i used to think, once i inherit something from my father (if ever I get some) i'll buy three 2nd hand units for starter (CASH) then register it to LTFRB, then have a small parking space outside our home, then 1 secretary to do the payroll/collection of everyday boundary then that's it! i never thought it was that complicated.

  161. Geri says:

    For one unit only? Correct me if I'm wrong.

  162. Geri says:

    Sorry Anonymous but LTFRB website is down and I can't find other posts to address your query. So I won't hazard a guess. Best to check with LTFRB.

  163. Anonymous says:

    what are single line franchise means?

  164. Anonymous says:

    Hi Geri, What do extendable franchise means? how many years more if they extended it?

  165. Geri says:

    @Anonymous, best to clarify with the seller what ready to use means since some sellers just indicate that as additional “come on” to potential buyers.

    Downside of 2nd hand franchise? Can't think of any major one as long as you prove that the franchise is legit, except maybe it has a shorter validity period over a new one?

    And yes, I would think franchise's are transferable since old vehicles are bound to be retired some day. Veterans, please correct me if I'm wrong.

    Ready to use may mean the taxi unit comes with a franchise, but still you'll have to transfer the franchise and the taxi to your name (unless there's a different agreed set up). 2nd hand franchise may not be too risky, I would think there are more items to look out for on a second hand vehicle than a second hand franchise. Goodluck!

  166. Anonymous says:

    Hi Geri! I've been looking for 2nd hand taxis on ads which says ready to use. Does that mean that I don't need to get franchise? Is it safe to use 2nd hand franchise, is there any down side of doing that? Is frachise transferable, like what if I retire the unit and will buy a brand new one?

  167. Geri says:

    @Joseph, inquiring with LTFRB may be a good start. Or with bigger taxi operators (the more frequent ones you see). Actually, you can also search in Google too as some of those who sell their taxi units also sell their franchise along with it. Hope this helps.

  168. Joseph Velarde says:

    May I know where to buy a taxi franchise?

  169. Geri says:

    Yes, I would think there is a way to verify the franchise with LFTRB. It's like verifying a TCT with Registry of Deeds. Best to inquire with LTFRB before any transfer / purchase is done.

  170. Anonymous says:

    Hello Geri, thank you for the helpful information. How can i make sure that used franchises are not fake? Is there a way issuing a true copy or have them authenticated in LTFRB before acquiring them?

  171. Anonymous says:

    thank you so much for the info, may i ask how much is the cost of the renewal of taxi registration?

  172. Geri says:

    Sorry Anonymous but I am not (yet) familiar with the renewal costs of taxi registration. Any Juan out there who might know the answer?

  173. Geri says:

    Noel, either for one or for many (i.e. fleet) should be possible. Price will vary as well on vehicle count.

  174. Noel dela Pena says:

    Are we going to buy one franchise for each cab or can we buy a franchise to be used for 2 or more cabs?is this possible?

  175. Prathima Trellis says:

    Wonderful blog & good post.Its really helpful for me.
    To start a Nursery Play school in India

  176. Anonymous says:

    when you buy a franchise please be aware of the following

    THE Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular No. 50-2012 prescribing the issuance of certificate of tax clearance to public transportation operators as a pre-requisite for acceptance by the Land Transportation Franchising and Regulatory Board of an application for approval of sale and transfer of a certificate of public convenience.

  177. Geri says:

    Thank you Anonymous for this information.

    This is the first time I'm hearing this but knowing our BIR of recent years, this is not unexpected.

  178. opu shaon says:


  179. Anonymous says:

    how many taxi you buy ?

  180. Geri says:

    Thank you for your “real-life” inputs.

  181. Anonymous says:

    The most tricky in taxi business is the paper related things. You've secured franchise, you've got brand new units, that doesn't end there. You still need to put the franchise in the car because the car you bought is considered as private and it requires some paper application in the LTFRB in order to convert it into a PUV. What does that mean? that means you apply and fall in line, that means you need to dance with the employee in LTFRB and we all know how the government employee works, right? that means delay, while your monthly in your brand new car is running.

    Here is my suggestion, go to LTFRB, make some inquiries, have some friends inside the office, even just the coffee boy there and you will eliminate some burdens in applying. Oh before i forgot, if you are really planning to go with the brand new car, make sure you will declare in the bank that it will be used for PUV but prepare for a very large downpayment.

    Don't lure yourself on the promos that requires small downpayment, some banks might even ask for as low as 10K and I am sure that those cars are intended for private use. Here is the trick, the LTFRB requires an authorization from the bank that finance your car before they will convert it into a PUV and the bank will never ever issue the authorization no matter what happen. This means that your taxi application and the issuance of your yellow plate number will put in hang unless of course you know someone inside the LTFRB-the power of friend and money under the table. Until then, hope this helps.

  182. Sandra Turner says:

    Very useful article for me. Find cab driver on iBuggie.

  183. Sushma Gupta says:

    Nice post. I am agreed with your post. Thanks a lot for sharing this post. Keep sharing.

  184. Anonymous says:

    how much is the franchise cost?

  185. Geri says:

    Getting a brand new car has it's pros and cons. Of course brand new is more attractive to passengers and will carry less maintenance cost. If you completely trust your driver to take care of the car why not. I used 2nd hand in my example due to assumed budget constraints haha! And if you search the internet, lots of 2nd hand units for sale.

    I suggest you work on getting the franchise first before the unit. Since you've done preliminary costing anyway using brand new, then your assumptions will just go down should you opt for the 2nd hand. Getting the franchise I think is more tricky than securing a unit.

    As for the boundary, some do alternate, while some do 12-hour shifts. And yes I would think doing the 12 hour shifts would mean 500-750 per driver. Depends on the driver/s you get! Though I would think most will prefer to have the units for whole day and just alternate with fellow drivers.

    Goodluck and hope to hear updates from you!

  186. Carlos says:

    Thanks so much for this!

    I'm actually trying to get into the taxi business.

    I was thinking of getting a brand new car to use as taxi, though. That increases my monthly payments but it seems like the monthly revenue would still cover it. Still, I'd like to ask your opinion; is that a good idea? I'm just wondering since you chose a second hand model for the example.

    Also, about the boundary. since 1000 – 1500 is per day… that means if I have 2 drivers working in shifts, they each pay me 500-750?

    And would it be better to instead have them alternate in days?

    I'm just asking because most of the drivers I've talked to seem to be the sole driver. So I'm not sure if they can drive 12 hours and still get the daily boundary or if they drive 12+ hours and just bring it in for the car barn…